■ Introduction: The Changing Landscape of Foreign Worker Employment

In fiscal year 2027, Japan’s foreign worker acceptance system will undergo a major transformation. The Technical Intern Training Program, which has been in operation for many years, will be abolished and replaced by a new “Skilled Worker Development System” (Ikusei Shuro Seido).

This institutional change is not merely a renaming. It signifies that foreign workers will gain significantly greater freedom to change jobs, intensifying competition among companies for talent acquisition. For regional companies in particular, this marks the arrival of a challenging era with increased risk of losing carefully trained personnel to urban areas.

This article draws on case studies from Kagawa Prefecture to provide detailed explanations—from a residence status management perspective—of practical points that companies employing or planning to employ foreign workers should understand.

■ Rapid Increase in Foreign Workers: National Trends Seen Through Kagawa Prefecture

According to data from the Kagawa Labor Bureau, the number of foreign workers in the prefecture reached 16,557 as of the end of October 2025. This represents a record high for the third consecutive year and a 3.2-fold increase compared to ten years ago (5,172 workers). The number of establishments employing foreign workers also reached an all-time high of 2,358.

A survey conducted by the Hyakujushi Economic Research Institute found that 38% of companies in the prefecture already employ foreign workers. The primary reasons cited were “chronic labor shortage” and “few Japanese applicants.”

This trend is not limited to Kagawa Prefecture. As Japan’s population ages and declines nationwide, foreign workers have become an indispensable pillar supporting the Japanese economy.

■ From Technical Intern Training to Skilled Worker Development: What Will Change?

The conventional Technical Intern Training Program ostensibly served “international contribution” purposes, aimed at transferring technology to developing countries. However, in practice, it functioned as a means of securing labor, and issues were raised regarding restrictions on workers’ rights, including limitations on job changes.

The Skilled Worker Development System, beginning in fiscal 2027, explicitly positions foreign nationals as “labor force” and permits job changes under certain conditions. While this expands options for foreign workers, companies will face increased risk of talent outflow.

Even currently, among approximately 2,400 technical interns in Kagawa Prefecture who transitioned to Specified Skilled Worker status (as of the end of June 2023), one-third changed jobs outside the prefecture. Most moved to companies in Osaka or the Tokyo metropolitan area, where wage levels are higher.

The introduction of the Skilled Worker Development System will likely accelerate this mobility further.

■ Challenges Facing Regional Companies: The Reality of Losing the Wage Competition

There is a clear wage gap between major metropolitan areas and regional areas. For foreign workers, income is one of the most important motivations for working in Japan, making job changes to urban companies offering higher wages a rational choice.

So, do regional companies have no chance of winning?

The answer is “No.” It is entirely possible to compete on factors other than wages.

■ Creating Workplaces Chosen by Foreign Workers: Five Critical Points

1. Careful Job Instruction and Technical Training

At a construction company in Marugame City, Kagawa Prefecture, Indonesian technical interns are learning asphalt paving techniques. One trainee commented, “The techniques are difficult, but I can learn them with confidence because of the careful instruction. I want to work hard so I can work here for a long time.”

Systematic training programs, personalized instruction, and an environment where workers can feel their growth are highly attractive to foreign workers.

2. Comprehensive Japanese Language Education

The language barrier is one of the greatest challenges foreign workers face when working in Japan. When companies provide Japanese language education, not only does work efficiency improve, but workers’ quality of life also increases.

Improved Japanese proficiency directly contributes to integration into local communities and long-term retention.

3. Life Support Services

Initially, there were cases where trainees did not follow garbage disposal rules or created noise issues, leading to complaints from local residents. These stemmed from cultural and habitual differences.

Companies should provide thorough life support, including life orientation sessions, explanations of local rules, and establishment of consultation services for daily concerns.

4. Bridging to Local Communities

One company actively encourages foreign workers to participate in local cleaning activities and community events. This builds trust with local residents and gives foreign workers a sense of belonging as community members.

Putting down roots in the community is a crucial factor for long-term retention.

5. Proper Residence Status Management and Compliance

For foreign nationals to work in Japan with peace of mind, proper management of residence status is fundamental. When companies comply with laws and handle procedures appropriately, workers can work without future anxiety.

■ Practical Aspects of Residence Status Management: Fundamentals Companies Must Understand

Companies employing foreign nationals must understand and appropriately address the following points regarding residence status.

Types of Residence Status and Work Restrictions

Residence statuses fall into three categories: “work permitted,” “work not permitted,” and “work permission determined individually.” While Technical Intern Training, Specified Skilled Worker, and Engineer/Specialist in Humanities/International Services permit work, each has restrictions on the type of work allowed.

If employment contract content does not match the residence status, it constitutes illegal employment, and companies may also face punishment (offense of promoting illegal employment).

Transition from Technical Intern Training to Specified Skilled Worker

Technical interns who meet certain requirements can transition to “Specified Skilled Worker” status. Specified Skilled Workers can change jobs within the same industry sector and engage in more specialized work.

Companies should consider the option of continuing to employ excellent interns as Specified Skilled Workers.

Preparation for the Skilled Worker Development System

Details of the system will be progressively announced leading up to the fiscal 2027 start. Companies need to stay updated with the latest information and prepare their acceptance frameworks.

Dependent Family Members and Stable Living Foundations

Foreign nationals with Specified Skilled Worker No. 2 status or work visas can bring their families to Japan (dependent visa). The ability to live with family serves as a major motivation for long-term retention.

Companies should consider acceptance systems that encompass family life support as well.

Residence Period Management and Renewal Procedures

Exceeding the residence period results in illegal overstay. Companies should establish systems to centrally manage the residence periods of employed foreign nationals and appropriately support renewal procedures.

■ Role of Government: Need for Support Systems to Assist Companies

Corporate efforts alone have limitations. Local governments and administrative agencies are expected to provide support such as:

・Development of retention support programs for foreign workers
・Understanding and providing information on corporate needs
・Establishment of multilingual consultation services
・Projects promoting coexistence with local residents
・Collaboration with Japanese language educational institutions

Experts point out that “it is important for government to understand corporate needs toward retention and provide support.”

■ Importance of Collaboration with Specialists

Employing foreign nationals involves multiple legal domains, including labor law, immigration law, and social insurance. It is difficult for companies to handle everything alone, making specialist support essential.

・Administrative scriveners: Residence status applications, visa procedures
・Social insurance and labor consultants: Labor management, social insurance procedures
・Attorneys: Labor disputes, legal risk response

By collaborating with appropriate specialists, companies can ensure legal compliance while creating an environment where foreign workers can work with confidence.

■ Conclusion: Foreign Workers Are Now the “Choosers”

Until now, companies were in the position of “choosing” foreign workers. However, with the introduction of the Skilled Worker Development System, we are shifting to an era where foreign workers “choose” companies.

Not only wages, but also workplace environment, growth opportunities, life support, relationships with the community, and legal stability—all of these will become selection criteria for foreign workers.

Even regional companies can secure and retain excellent talent by providing careful job instruction, comprehensive Japanese language education, thorough life support, promotion of coexistence with local communities, and proper residence status management.

“The battle for trained foreign workers” is already imminent. Only companies that start preparing now will survive this competition.

For questions regarding foreign worker employment or residence status procedures, please consult with specialists early. Appropriate support will protect the future of both your company and your foreign workers.

https://news.yahoo.co.jp/articles/97e03107a4229489a9351fa248b5bb824a06b021

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